Cyberonics' False Claims Cost States $75M: Whistleblower

Law360, New York (July 25, 2012, 7:48 PM EDT) -- A New Jersey federal court unsealed a complaint Tuesday alleging Cyberonics Inc. violated the False Claims Act in its campaign to convince regulators and doctors that its nerve-stimulating therapy system could treat severe depression, costing states' insurance $75 million.

The complaint, filed March 2010 by relator Stefan P. Kruszewski on behalf of 21 states, the federal government and the District of Columbia, was unsealed after the U.S. government declined to intervene in the case, which alleges Cyberonics' false claims cost them $75 million in Medicare and...
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